This calculator shows a fully amortizing ARM which is the most common type of ARM. The monthly payment is calculated to payoff the entire mortgage balance at the end of the term. The term is typically 30 years. After any fixed interest rate period has passed, the interest rate and payment adjusts at the frequency specified. A Fully Amortizing ARM will also have a maximum rate that it will not exceed. Below is a list of the most common types of Fully Amortizing ARMs.

Common Adjustable Rate Mortgages

ARM Type

Months Fixed

10/1 ARM

Fixed for 120 months, adjusts annually for the remaining term of the loan.

7/1 ARM

Fixed for 84 months, adjusts annually for the remaining term of the loan.

5/1 ARM

Fixed for 60 months, adjusts annually for the remaining term of the loan.

3/1 ARM

Fixed for 36 months, adjusts annually for the remaining term of the loan.

1 year ARM

Fixed for 12 months, adjusts annually for the remaining term of the loan.

Mortgage amount

Original or expected balance for your mortgage.

Starting interest rate

Initial annual interest rate for this mortgage.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Interest rate cap

This is the highest interest rate allowed by your mortgage. Your actual interest rate will not be adjusted above this rate.

Months before first adjustment

This is the number of months that the interest rate is fixed. After this period, the interest rate will be subject to rate adjustments. If you enter zero in this field, we assume that the rate will begin making adjustments after initial period of time between adjustments has passed. If any number other than zero is entered, the first adjustment will take place at that time, and adjustments will happen at the frequency entered in the "months between adjustments" field.

Expected adjustment

The amount you believe that your mortgage's interest rate will change. This amount will be added to or subtracted from your interest rate.

Months between adjustments

The number of payment periods between potential adjustments to your interest rate. The most common is 12 months, which means your payment could change at most once per year.